A Study On The Relationships Among Fdi,foreign Trade And Economic Growth

Compared with some coastal advanced provinces and cities in the scale, quality and efficiency,Chongqing has the disparity ,despite Chongqing has made remarkable performance in attracting foreign direct investment. So,in order to take part in the international competition and the cooperation in a deeper degree,reduce the gap with the coastal advanced provinces and cities ,accelerate the development of Chongqing,we will summarize the experience of using FDI and the foreign trade and make deeply research in the using FDI,the foreign trade economic effect and the important factors which affect it in Chongqing.Undoubtedly it is of important significance in analysing of the impact on the law of economic development of FDI in Chongqing, making macroeconomic policies and specific rules for the operation of FDI and foreign trade,correcting inappropriate economy growth mentality and impeling the regional sustained and steady economic growth of Chongqing.Based on related economic theories, by combining qualitative analysis with quantitative analysis,theoretical analysis with empirical analysis, this paper uses the econometric methods of cointegration test and Granger causality test to make a systematic study on the relationships among FDI,foreign trade and economic growth in Chongqing. Then, it draws the conclusion that there are long-term dynamic equilibrium relationships among them, FDI Granger causes economic growth, while economic growth does not Granger cause FDI, there are not Granger causality between net export and economic growth. The level of opening up of Chongqing needs to be further raised.The paper is made up of five parts: Chapter 1 is introduction. Chapter 2 is literature review, first it introduces theories concerning the impact FDI and foreign trade may bring to economy, and the views of the role they play in the theory of economic growth;then it summarizes the empirical studies at home and abroad on the relationships among FDI, foreign trade and economic growth. Chapter 3 describes the present condition of FDI anal foreign trade in Chongqing economic operation. Considering their position and role in economic operation, it analyzes from different aspects. Chapter 4 is the empirical analysis of the relationships among FDI, foreign trade and economic growth, using the methods of cointegration test and Granger causality test. Chapter 5 is conclusion and suggestions,first it comes to the basic conclusion, and analyzes the causes, then it brings forward some advices on promoting economic growth by developing outward-looking economy in Chongqing.